The short answer: in 2026 a new apartment bought from a developer carries VAT, at 19 percent or at the reduced 5 percent rate on part of the price if it will be your main residence and meets the conditions. When VAT is charged, you pay no Land Registry transfer fee. A resale usually carries no VAT, but transfer fees apply at a 50 percent discount. Stamp duty was abolished on 1 January 2026, and there is no annual property tax. Tax rules change often, so always confirm the figures with your lawyer before you sign.
All figures below were checked in September 2026 against the sources listed at the end of each section.
1. VAT on new property
Standard rate: 19 percent
VAT applies when you buy a new building from a VAT registered developer. The standard rate in Cyprus is 19 percent.
Reduced rate: 5 percent for a main residence
Since the 2023 reform (Law 42(I)/2023, published 16 June 2023), the reduced rate works like this, according to PwC Worldwide Tax Summaries (reviewed 4 August 2026) and GK Law Firm (updated 22 June 2026):
- 5 percent applies to the first 130 square metres of buildable area, for a value up to €350,000
- the property’s total buildable area must not exceed 190 square metres
- the total transaction value must not exceed €475,000
- if either limit is exceeded, 19 percent applies to the whole price
- the rest of the area or value above the 5 percent portion is charged at 19 percent
- the home must be your main and permanent residence for ten years
Who can apply:
- individuals aged 18 or over, of any nationality, EU or non EU
- not companies
- you do not need a residence permit when you apply, but the home must really become your main residence in Cyprus
The application is filed with the Tax Department through the Tax For All platform, after the contract is signed and stamped and the first payment is made, and before you move in.
The ten year rule matters. If you sell the property or rent it out within ten years, you must inform the Tax Commissioner within 30 days, and the difference between 19 and 5 percent is repaid in proportion to the years remaining (GK Law Firm, 2026). So the reduced rate is not designed for a pure investment purchase.
What changed in 2026
For projects whose planning permit was applied for or issued by 31 October 2023, a transitional regime allowed the older and more generous rule (5 percent on the first 200 square metres, with no value cap). That window was due to close on 15 June 2026. Law 109(I)/2026, published in the Official Gazette on 24 April 2026, extended it to 31 December 2026 where the building permit was issued after 1 January 2025 or has not yet been issued. Where the building permit was issued by 31 December 2024, the 15 June 2026 deadline stayed in place (Michael Kyprianou Law Firm, 28 April 2026; KPMG, May 2026). Whether a specific project qualifies is a technical question: ask your lawyer and the developer for the permit dates.
2. Transfer fees at the Land Registry
Transfer fees are paid to the Department of Lands and Surveys when the title deed is transferred into your name.
The official scale
| Portion of the value | Rate |
|---|---|
| Up to €85,000 | 3% |
| €85,001 to €170,000 | 5% |
| Above €170,000 | 8% |
Each rate applies only to the part of the value in that band (PwC; Cyprus Tax Life, 2026).
The discounts that usually apply
- VAT was charged on the purchase (a new build): no transfer fee.
- No VAT was charged (a typical resale): transfer fees are reduced by 50 percent.
A worked example on a resale
For a resale apartment valued at €250,000 with no VAT:
- 3% of €85,000 = €2,550
- 5% of €85,000 = €4,250
- 8% of the remaining €80,000 = €6,400
- full scale total = €13,200
- after the 50 percent reduction = €6,600
The Land Registry calculates the fee on the value it assesses, and the rules on joint ownership and family transfers have their own treatment, so ask your lawyer for an exact figure. The Department of Lands and Surveys also offers an online calculator on its portal.
3. Stamp duty: abolished from 1 January 2026
Until the end of 2025, buyers paid stamp duty on the contract of sale: nothing on the first €5,000, 0.15 percent up to €170,000 and 0.2 percent above, capped at €20,000. Stamp duty was abolished from 1 January 2026 (PwC, reviewed 4 August 2026). According to index.cy (11 March 2026), contracts signed by 31 December 2025 may still follow the old rules, so if you signed last year, check with your lawyer.
4. Other costs when buying
- Legal fees. Agreed with your lawyer, often as a percentage of the price or a fixed fee. Ask for a written quote.
- Non EU purchase permit. Free of charge, according to Cyprus Mail (6 February 2026).
- Bank charges for international transfers and currency conversion.
- Mortgage costs, if you borrow: valuation, arrangement fees and registration of the mortgage.
5. Costs after you buy
- No annual immovable property tax. It was abolished from 1 January 2017.
- Municipal and sewerage charges, set locally.
- Common expenses for the building.
- Income tax on rent. From tax year 2026, rental income is no longer subject to Special Defence Contribution. It stays within income tax rules and individuals may pay the 2.65 percent general health system contribution (Philippou Law, updated 29 August 2026). Since 1 July 2026, rent on Cyprus property must be paid by bank transfer, card or another electronic method (KSA, updated 3 July 2026). Your home country may also tax the income, so speak to an adviser on both sides.
- Capital gains tax when you sell, charged at 20 percent on the gain from Cyprus property, with certain lifetime exemptions. Check the current exemption amounts before you sell.
Frequently asked questions
Do foreigners qualify for 5 percent VAT in Cyprus?
Yes, the reduced rate is open to individuals of any nationality, provided the property becomes their main residence in Cyprus for ten years and meets the size and value limits. It does not suit an apartment bought only to rent out.
Is there still stamp duty in Cyprus?
Not for contracts signed from 1 January 2026, when stamp duty was abolished. Contracts signed earlier may still be subject to it.
Do I pay transfer fees on a new apartment?
No, if VAT was charged on the purchase, no transfer fee is due when the title deed is transferred to you.
Who pays transfer fees in Cyprus, the buyer or the seller?
Normally the buyer, at the time of transfer at the Land Registry. The contract can say otherwise, so check yours.
Is there an annual property tax in Cyprus?
No. Immovable property tax was abolished in 2017. Owners still pay local municipal charges and building common expenses.
Talk to us
Numbers are easier when someone walks you through them for a real apartment. At TLV Developers we are happy to explain how VAT and fees apply to the apartments we offer and we always recommend confirming your own position with an independent lawyer. Reach out whenever it suits you.
This article is general information, not tax or legal advice. Rules change, so confirm every figure with a qualified Cyprus lawyer or tax adviser before you commit.